Cbus appoints deputy CIO as it closes in on 50% internalisation target

Industry super fund Cbus has promoted Leigh Gavin, currently portfolio strategy head, to deputy chief investment officer (CIO).

Cbus said the role holds a “pivotal” function within the investment leadership team, supporting the next phase of internalisation of its investment model as the fund hits a $100 billion assets under management milestone.

The role was vacated by Alex Campbell in June 2024.

Gavin joined Cbus in 2023 as head of portfolio strategies, making the move from rival AustralianSuper, where he was head of investment model design.

He previously served at LUCRF Super, considered Australia’s first industry super fund (which later merged with AustralianSuper), his first role in the super sector, where he was CIO between May 2016 to April 2021. Gavin began his career in the advice space, including a stint as senior consultant at Frontier Advisors.

Cbus acknowledged Gavin’s role in supporting the fund’s ongoing internalisation strategy, kicked off in 2017, which has brought more than half of its assets under management (AUM) in-house, as well as seeking out new investment opportunities abroad.

More than a third (34%) of the super fund’s investment portfolio, including hybrid strategies, is managed internally, as at 30 June 2024. Cbus said it aims to grow this to at least half of its portfolio within three years.

Commenting earlier last year on the progress of the internalisation program Gavin said the internalisation had “delivered strong results for members”, including contributing to an overall saving in excess of $1 billion in investment fees and cost savings since 2018.

Cbus Super CIO Brett Chatfield said the key appointment reflected the fund’s expanding internalisation campaign.

“I am very pleased to announce the appointment of Leigh Gavin to the role of Deputy CIO. Leigh has been an integral part of the Investment Leadership Team since 2023, and brings a strong depth of senior experience including at CIO and senior investment advisory levels.

“In addition to his impressive experience, Gavin’s strong knowledge of the Fund and connection to investing for our members dates back to the early 2000s as an adviser.”

Gavin said the fund is entering a ‘Goldilocks period’ for its members – “small enough to take advantage of a range of opportunities and large enough to be achieving real economies of scale for members”.

“We see plenty of scope to roll out new internal strategies, our portfolio construction and DAA programs are really taking shape and we are well placed to take advantage of private markets opportunities,” Gavin said.

“I’m excited to be assisting Brett to deliver on our current strategy and turning an eye to what the next ten or twenty years will look like.”